Here’s what not to fix when selling a house
Mia Taylor BANKRATE.COM
Before putting your home on the market, it’s important to make it look its best for prospective buyers. Getting a home in show-ready shape might involve decluttering the interiors, sprucing up the curb appeal and investing in key repairs around the residence.
But don’t get carried away. Pouring too much money into the home can be a losing investment: It won’t substantially improve your sale price, leaving you out-of-pocket for unnecessary expenses. Here are some of the things homeowners need not fix when listing a home for sale.
Why you don’t need to fix everything
As a general rule, it’s a good idea to focus on fixing items that may impact your home’s sale price. Beyond that, money spent on repairs and replacements may be wasted, as prospective buyers may not find the improvements necessary or even notice the work was done at all.
In addition, most major renovation projects do not recoup the money you spend on them at resale. “Many times a major kitchen renovation or room addition won’t give you the return on investment that you might expect,” says
Jade Lee Duffy, a Realtor with Epique in San Diego, California. For example, spending thousands of dollars on fancy new kitchen tiles can backfire: Buyers have their own taste and don’t want to end up paying for new tile that they don’t like. Projects like extensive landscaping, highend fixtures and new pools typically do not offer a dollar-for-dollar return either, she says.
Buyers do usually expect the house to be in “good working order,” though, says Duffy. Before embarking on repairs, consult with a local real estate agent for advice and input about projects that make the most sense — and might translate into better offers.
What you should fix when you sell
Julie Upton, a Realtor with Compass in the San Francisco Bay Area, suggests concentrating on things buyers typically notice most. “Buyers see flooring, walls, kitchens and baths,” she says. “They focus on beautiful main living spaces. That is where you should start.” You should address basic wear-and-tear in these areas. For example, fresh paint is a must, says Upton — in fact, she advises against even listing a home without repainting the interiors first. Refinishing hardwood floors can also be a good idea. According to the
U.S.
pending home sales rise for third straight month
REUTERS
Contracts to buy U.S. previously owned homes rose unexpectedly in October, notching a third straight month of increases, despite high mortgage rates and as inventory of properties for sale continued to build and a healthy job market fortifies the finances of prospective buyers.
The National Association of Realtors (NAR) said on Wednesday its Pending Home Sales Index, based on signed contracts, rose 2.0 percent last month to 77.4 — the highest since March — from 75.9 in September. Economists polled by Reuters had forecast contracts, which become sales after a month or two, would fall 2.0 percent after increasing 7.5 percent in September, the largest increase in more than four years.
Pending home sales rose 5.4 percent from a year earlier and all four regions saw month-overmonth and year-over-year increases.
“Homebuying momentum is building after nearly two years of suppressed home sales,” said Lawrence Yun, the NAR’s chief economist. “Even with mortgage rates modestly rising despite the Federal Reserve’s decision to cut the short-term interbank lending rate in September, continuous job additions and more housing inventory are bringing more consumers to the market.”
National Association of Realtors’ most recent “Remodeling Impact Report,” refinished hardwoods are one of the few renovation projects that actually recoup more than their cost.
Although it’s a less sexy fix, updating an aging or faulty heating, venting and air conditioning (HVAC) system might also be worth considering, especially if you live in a warm-weather locale. “The number one repair is HVAC during any summer home sale,” says Dustin Fox, a Realtor with Pearson Smith Realty in Ashburn, Virginia. “If your air conditioning is toward the end of its life and the
thermostat can’t keep up with the set temperature, buyers — and buyer’s agents — will notice.”
Beyond repairs
You only have one chance to make a first impression with buyers, so investing in your home’s front entrance and the immediate area is usually money well spent. “When the exterior of a home has good curb appeal, it means it is attractive to look at and inspires confidence,” says Dino DiNenna, a broker-Realtor with Southern Lifestyle Properties in Hilton Head, South Carolina. “Good curb appeal can
help to sell a home faster and at a much better price.”
Staging can also make a home more desirable and appealing to buyers. Wellstaged homes sell faster than unstaged ones, says DiNenna. “Plus, it can increase the selling price of a home by 20 percent or more,” he says.
What not to fix when selling a house
Just as important as knowing what to fix is knowing what you don’t need to bother with.
There’s typically no need to address relatively small issues, including: w Minor electrical or plumbing issues: Often buyers will not worry about small, isolated electrical and plumbing problems — the light switch attached to nothing, the faucet that drips a bit before stopping. “Just disclose these issues and let the buyer deal with it,” says Upton.
w Older appliances: Real estate listings love to namedrop snazzy brands or tout a “newly outfitted” kitchen/ bathroom/laundry room — and certainly, state-of-theart appliances can be appealing. But not having them is rarely a dealbreaker, especially in a hot market, says Keri Rizzi, a Realtor with HomeSmart in White Plains, New York. Only “if feedback repeatedly comes in stating that the old appliances are
keeping buyers from making offers” should sellers take that into consideration and adjust their price accordingly, or replace the appliances, she says.
w Aging windows: You want your windows to be sparkling clean, but don’t bother to actually replace them. New windows are a costly endeavor that typically will not prove valuable when listing your home on the market. “We never recommend replacing windows,” says Fox. “We’ve rarely had a client not move forward with an offer because the windows are old.”
w Outdated floor coverings: As long as it’s in decent shape, it’s probably not worth replacing wall-towall carpeting or dated-looking floor tiles. Buyers might not adore them, but they can be easily replaced with something more to the new owner’s personal taste.
w Any project you can’t finish: Avoid starting any work that may not be able to be completed prior to listing. Works-in-progress can negatively impact a prospective buyer’s impression of your home: ”A half-finished anything looks worse than just leaving it as is,” says Upton. “It also sends a signal that the seller ran out of money, so a buyer may think they can offer less because the seller may be in financial distress.”
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